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Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV and its NPV for the project.

. Rolling in Dough Cookie Corporation is trying to determine its certainty equivalent NPV and its NPV for the project. What is the CNPV if the risk free rate is 2% and the initial investment is $19,000 (rounded)? What is the NPV with a cost of capital of 15%?
Year Cash Flows Certainty Equivalents
1 $15 000 90%
2 $15 000 60%
3 $ 8 000 50%






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Dear Student, Please... View the full answer

8424088.xlsx

SOLUTION:
Net Present Value:
Year
0
1
2
3 Cash Flows
$(19,000.00)
$15,000.00
$15,000.00
$8,000.00 PVF @ 15% Present Value 1.000
0.870
0.756
0.658 $(19,000.00)
$13,043.48
$11,342.16
$5,260.13 Net...

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